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A new report published by MarketsandMarkets analyses the global blockchain in the energy market, forecasting revenue generation to increase by 78.32% between 2018 and 2023.

Revenue is expected to increase from $394.3 million to $7.1 billion within the power, oil and gas sectors.

Factors including increasing popularity of the blockchain technology in the energy sector and rising security concerns are expected to drive the market growth.

The report explores the blockchain in the energy market by type, component, end-user, application and by region. Read more: World’s first blockchain bond transaction to be launched

By type, the private sector dominated the market in 2017 and is expected to do so through 2023. This type of blockchain runs faster and is efficient owing to its security operations resulting from the control of a single organisation. Only predetermined users can make and verify transactions.

By component, the services segment led the market in 2017. This was owing to companies including utilities, partnering with startups to pilot application in energy trading, grid management and supply chain management.

For instance, a number of utilities used blockchain to incorporate peer-to-peer energy trading, smart contracts and real-time pricing in their operations.

By region, the 2017 market was characterised by Europe dominating the sector ahead of Asia Pacific, North America and the rest of the world.

Europe had the highest number of blockchain startups and implemented projects, which resulted from regulatory support from governments and increased investments in blockchain within the energy market.

Germany and the UK had the highest number of blockchain in the energy market projects.

Most of the utility companies such as Enel (Italy), RWE (Germany) and Vattenfall (Sweden) are collaborating with Ponton's (Germany).

This article was published on our sister website Smart Energy International (www.smart-energy.com).